For 'Net Stocks, it's a Wild, Wild Web

Not since the days of the dot-com bubble has stock-picking been so crucial as technical patterns diverge.

More than a decade after the dot-com bubble burst, the Internet sector remains the Wild West, which makes individual stock selection more important than ever.

Although the Interactive Week Internet index—a capital-weighted measure of major stocks in the sector—is trading 38% above its 2007 peak, it is still roughly half of where it was in March 2000. Compared to that roller coaster, the Standard & Poor's 500's ride has been rather...